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March 26, 2008

FHA Loan Amounts Increase

The federal governments attempt to spur the housing market is long overdue. The National Association of Realtors has worked hard for many years to have FHA loan limits raised as the housing became more expensive. It is unfortunate that it has taken this long for these limits to be raised. The increase in the limits and the Energy Efficient Financing that FHA offers make it a perfect time to purchase!

The higher loan limits will help people qualify for a government insured mortgage through the Federal Housing Administration. This will allow more people to purchase a home under less risky obligation than the debunked sub prime financing vehicles. This will be beneficial to those who are first time home buyers and those who are purchasing their second or third home.

These higher limits in FHA financing will not allow buyers to purchase there homes with zero down, you will still need to have a down payment. In many cases FHA financing will require you to have at least 3% of the homes purchase price as a down payment. When clients ask me about financing I usually advice them that for the best deal it is a good idea to have 10 to 20 percent of the home's purchase price for a down payment!

If you have questions or would like to learn more. Please feel free to call Cheri Kuhn or Jody Thorpe of Waters Realty LLC. You can also visit our website by clicking Waters Realty.

Comments

FHA Loan Amounts Increase

The federal governments attempt to spur the housing market is long overdue. The National Association of Realtors has worked hard for many years to have FHA loan limits raised as the housing became more expensive. It is unfortunate that it has taken this long for these limits to be raised. The increase in the limits and the Energy Efficient Financing that FHA offers make it a perfect time to purchase!

The higher loan limits will help people qualify for a government insured mortgage through the Federal Housing Administration. This will allow more people to purchase a home under less risky obligation than the debunked sub prime financing vehicles. This will be beneficial to those who are first time home buyers and those who are purchasing their second or third home.

These higher limits in FHA financing will not allow buyers to purchase there homes with zero down, you will still need to have a down payment. In many cases FHA financing will require you to have at least 3% of the homes purchase price as a down payment. When clients ask me about financing I usually advice them that for the best deal it is a good idea to have 10 to 20 percent of the home's purchase price for a down payment!

If you have questions or would like to learn more. Please feel free to call Cheri Kuhn or Jody Thorpe of Waters Realty LLC. You can also visit our website by clicking Waters Realty.